Committee on Energy, Industry and Labor, Economic
Development and Small Business then the Judiciary.]

A BILL to amend the Code of West Virginia, 1931, as amended, by
adding thereto a new article, designated §22-29-1, §22-29-2,
§22-29-3 and §22-29-4, all relating to the phasing in of
requirements for electric providers to add renewable energy
systems to help protect and sustain the environment; providing
definitions; requiring the establishment of portfolio
standards for each provider and promulgation of enforcement
rules by the Public Service Commission; and providing a
severability clause.

Be it enacted by the Legislature of West Virginia:

That the Code of West Virginia, 1931, as amended, be amended
by adding thereto a new article, designated §22-29-1, §22-29-2,
§22-29-3 and §22-29-4, all to read as follows:

ARTICLE 29. RENEWABLE PORTFOLIO STANDARDS SUSTAINABLE ENERGY ACT.

§22-29-1. Definitions.

As used in this article:

(1) “Biomass” means organic matter that is available on a
renewable basis. Biomass includes:

(a) Organic material from a plant that is planted exclusively
for the purpose of electricity production. If the plant is
produced on land that was in crop production on December 31, 2011;
such plant is produced on land that is protected by the federal
Conservation Reserve Program (CRP); and that crop production on
Conservation Reserve Program lands does not prevent achievement of
the water quality protection, soil erosion prevention, or wildlife
habitat enhancement purposes for which the land was primarily set
aside;

(b) Any solid, nonhazardous cellulosic waste material that is
segregated from other waste materials, and which is derived from
waste pallets, crates and dunnage or landscape or right-of-way tree
trimmings, but not including municipal solid waste or post-consumer
wastepaper;

(c) Any solid, nonhazardous cellulosic waste materials that is
segregated from other waste materials, and which is derived from
agriculture sources, including orchard tree crops, vineyards,
grains, legumes, sugar and other crop byproducts or residues;

(3) “Provider of electric service” and “provider” means any
person or entity that is in the business of selling electricity to
retail customers in this state, regardless of whether the person or
entity is otherwise subject to regulation by the commission.
“Provider” does not include the state or a subdivision of the
state, rural electric cooperative, or a cooperative association,
nonprofit corporation or association, or a provider of electric
service which is declared to be a public utility and which provides
service only to its members.

Renewable energy does not include coal, natural gas, oil,
propane or any other fossil fuel or nuclear energy.

(5) “Renewable energy system” means a solar energy system that
reduces the consumption of electricity in a facility or energy
system or a system that uses renewable energy to generate
electricity and transmits or distributes the electricity that it
generates from renewable energy via:

(a) A power line dedicated to the transmission or distribution
of electricity generated from renewable energy and which is
connected to a facility or system owned, operated or controlled by
a provider of electric service; or

(b) A power line shared with not more than one facility or
energy system generating electricity from nonrenewable energy and
which is connected to a facility or system owned, operated or
controlled by a provider of electric service.

(6) “Retail customer” means a customer that purchases
electricity at retail. “Retail customer” includes the state and
its subdivisions.

§22-29-2. Establishment of portfolio standards.

(a) For each provider of electric services, the commission
shall establish a portfolio standard for renewable energy that
shall require each provider to generate or acquire electricity from
renewable energy systems in an amount that is:

(1) Not less than five percent of the total amount of
electricity sold by the provider to its retail customers in this
state during the years of 2013 and 2014;

(2) Not less than seven percent of the total amount of
electricity sold by the provider to its retail customers in this
state during the years of 2015 and 2016;

(3) Not less than nine percent of the total amount of
electricity sold by the provider to its retail customers in this
state during the years of 2017 and 2018;

(4) Not less than eleven percent of the total amount of
electricity sold by the provider to its retail customers in this
state during the years of 2019 and 2020;

(5) Not less than thirteen percent of the total amount of
electricity sold by the provider to its retail customers in this
state during the years of 2021 and 2022;

(6) Not less than fifteen percent of the total amount of
electricity sold by the provider to its retail customers in this
state during the years of 2023 and every year thereafter.

(b) If, for the benefit of one or more of its retail customers
in this state, the provider has subsidized, in whole or in part,
the acquisition or installation of a solar energy system which
qualifies as a renewable energy system and which reduces the
consumption of electricity, the total reduction in the consumption
of electricity during each year that results from the solar thermal
energy system is deemed to be electricity that the provider
generated or acquired from a renewable energy system for the
purposes of complying with its portfolio standard.

(c) The commission may adopt regulations that establish a
system of renewable energy credits, that is a trading mechanism
that may be used by a provider to comply with its portfolio
standard.

(d) The commission shall establish a renewable energy fund for
the purpose of promoting renewable energy systems in the state.
Any provider may comply with the requirements of this article by
paying two cents into the fund for every kilowatt-hour it sells to
retail customers in this state.

(e) Each provider of electric service shall submit to the
commission an annual report that provides information that relates
to the actions taken by the provider to comply with its portfolio
standard.

§22-29-3. Enforcement.

(a) The commission shall promulgate rules to carry out and
enforce the provisions of this article. The rules may include any
enforcement mechanisms which are necessary and reasonable to ensure
that each provider of electric service complies with its portfolio
standard. The enforcement mechanisms may include, without
limitation, the imposition of administrative fines.

(b) In the aggregate, the administrative fines imposed against
a provider for all violations of its portfolio standard for a year
must not exceed the amount which is necessary and reasonable to
ensure that the provider complies with its portfolio standard, as
determined by the commission.

§22-29-4. Severability.

The provisions of this article are severable, and if any
phrase, clause, sentence or provision is declared to be invalid or
is preempted by federal law or regulation, the validity of the
remainder of this article is not affected.

NOTE: The purpose of this bill is to phase in requirements for
electric providers to add renewable energy systems to help protect
and sustain the environment.